Tesla making RHD cars in Germany for export; RM9.5 billion manufacturing plant in India planned

Tesla has started producing right-hand-drive cars at its Berlin, Germany plant for export to India later this year, while a team from the electric carmaker is expected to visit India this month to explore potential sites for a manufacturing plant in the country that would need an investment of around US$2 billion (RM9.48 billion), Reuters has reported.

The right-hand-drive units that will be allocated to India have started production, and shipments to India are due to begin by the end of this year, a source told Reuters. Right-hand-drive units of the Tesla Model Y for the United Kingdom market were imported from China, though the carmaker has not mentioned if it is shifting imports to be from Berlin, the news wire reported.

India reduced import tax on selected electric vehicles on the condition that their manufacturer’s invest at least $500 million (RM2.4 billion) in the country and commence production within three years, however this faced resistance from other carmakers in the country, according to the news wire.

In addition to the RM9.48 billion manufacturing plant, Tesla also has plans for investing in a charging network, as well as for sourcing more components locally for the upcoming India plant. “Tesla already imports parts from India and is now looking at reducing sourcing from China and making India a bigger sourcing hub,” a source told Reuters.

In Malaysia, the Tesla Model Y was introduced officially with the brand’s official arrival into the country, with the first customer deliveries of the model commencing last month. For the 2024 model year, the Model Y received changes to its specification, differing those of the launch vehicle.

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